Sazgar Engineering Works (SAZEW) Q2 2025 earnings summary

Executive summary

• H1 FY2025 net sales reached Rs 44,694.66M, gross profit Rs 12,826.95M, pre-tax profit Rs 10,836.52M and net profit Rs 6,625.16M; EPS was Rs 109.60.

• Q2 net sales were Rs 18,362.66M and net profit Rs 2,407.68M; four-wheeler production and sales led the period’s expansion.

Financial highlights

• Q2 net sales rose from Rs 6,486.07M to Rs 18,362.66M YoY; gross profit increased from Rs 1,607.61M to Rs 5,206.32M.

• Q2 operating profit was Rs 4,302.87M vs Rs 1,258.13M; pre-tax profit was Rs 4,221.47M vs Rs 1,236.16M.

• H1 net sales increased from Rs 14,530.33M to Rs 44,694.66M; operating profit reached Rs 11,060.47M vs Rs 2,404.12M.

• H1 net profit was Rs 6,625.16M vs Rs 1,414.33M; basic and diluted EPS was Rs 109.60 vs Rs 23.40.

Outlook and guidance

• Outlook anticipates continued disinflation, possible further SBP policy-rate cuts, and sustained growth in exports, workers’ remittances and FDI in H2 FY2025.

• Lower policy rates are expected to reduce financing costs, improve auto affordability and support vehicle sales; product demand is expected to grow alongside sustainable economic growth.